If there’s one phrase I’ve used over and over on this blog, it’s if it sounds too good to be true it probably is. But greed is a powerful motivating force. For example, consider Yamashita’s gold.
Yamashita’s gold is the supposed booty that Japan accumulated during World War II in the Philippine Islands. Though it’s unclear whether or not this gold treasure really existed, the legend and the hunting for it continue to today.
For a con man, Yamashita’s gold represents an opportunity. Freeman Carl “Buck” Reed told investors he found it (and had also found “gold certificates” worth millions). Mr. Reed raised $1.3 million to get the gold buried in the Philippines. Instead of treasure hunting, the $1.3 million was used for maintaining Mr. Reed’s “facade of wealth.”
Mr. Reed also didn’t believe in filing tax returns. When you have income, that’s a felony. Combined with the fraud, that’s multiple felonies. Mr. Reed was convicted of tax fraud and then pled guilty to the gold fraud. He was sentenced to 87 months at ClubFed (more than 7 years).